High Court Kerala High Court

Saviour vs E.V. Mathai on 21 November, 2007

Kerala High Court
Saviour vs E.V. Mathai on 21 November, 2007
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

Ex FA No. 26 of 2006()


1. SAVIOUR, S/O. JOHN,
                      ...  Petitioner

                        Vs



1. E.V. MATHAI,
                       ...       Respondent

2. ROBERT, S/O. JOHN,

3. BINOY, S/O. SUDHAKARAN,

                For Petitioner  :SRI.JOSE JOSEPH ARAYAKUNNEL

                For Respondent  :SRI.BABU KARUKAPADATH

The Hon'ble MR. Justice P.R.RAMAN
The Hon'ble MR. Justice V.K.MOHANAN

 Dated :21/11/2007

 O R D E R
               P.R.RAMAN & V.K.MOHANAN,JJ .                (C.R)
           ----------------------------------------------
                     Ex.F.A. No.26 of 2006.
           ----------------------------------------------
                  Dated 21st November, 2007.

                           JUDGMENT

Mohanan,J.

The applicant in E.A.No.606/2004 in E.A.440/2004 in

E.P.No.58/2003 in O.S.No.20/1998 is the appellant herein who

challenges the order dated 16-8-2006 of the Principal Sub

Court, Kochi by which the application filed by the

appellant/petitioner under Order XXI Rule 101 read with Section

151 of C.P.C. was dismissed with costs holding that

O.S.No.134/2001 was a suit collusively filed by him against

his brother who is the 2nd respondent in the above application

and further found that he has no title or interest over the

petition schedule property under the sale conducted in

E.P.55/2002 in O.S.134/2001. It is the above order and

finding are impugned in this appeal.

2. The averments and claim of the appellant/petitioner

are as follows:

The appellant and 2nd respondent entered into a sale

EXFA 26/06
-: 2 :-

agreement on 10-8-1997 for the sale of 4 cents of property

including house bearing No.11/855 A situating in survey

No.1077/1 of Puthuvypu village for a total consideration of

Rs.3,60,000/- out of which Rs.15,000/- was paid as advance

on the date of agreement itself. It is the further case of the

appellant that as per the endorsement dated 9-12-1997, the

period of the agreement was extended for a further period of 2

years for execution and registration of the documents. It is

also averred that on 9-12-97, the appellant had paid the

entire balance amount towards consideration to the 2nd

respondent as the 2nd respondent was in absolute need of

money to meet his urgent demand. The appellant says that the

2nd respondent failed to perform his part of the contract which

constrained the appellant/petitioner to file O.S.134/2001

before the Sub Court, Kochi for specific performance and the

said suit was decreed with a charge over the property. Since

the said decree was not satisfied, the appellant/applicant has

preferred E.P.55/2002 for execution of the decree, the decretal

amount being calculated as Rs.4,03,472/-. Since no amount

EXFA 26/06
-: 3 :-

was paid, the petition schedule property therein, on which

there was a charge as per the decree, sold in court auction on

25-2-2003 and in the said auction, the appellant/applicant

participated and he bid the auction. The sale was confirmed

on 26-6-2003 and the appellant had obtained sale certificate

on 29-10-2003. Thereafter, as per the order in E.A.3/2004 in

E.P.55/2002 in O.S.134/2001, the appellant/applicant has

obtained delivery of the property and thus he is the absolute

owner of the petition schedule property and he is in possession

of the same. Thereafter, he was paying tax and he had

telephone connection to the said house and he was paying

electricity charges regularly and thus according to the

appellant/applicant he was fully enjoying the property as he

has got absolute ownership and possession without any

interference from any corner and the appellant/applicant was

not aware of any case relating to the petition schedule property

till 5-11-2004.

3. It is the further case of the appellant that only on 6-

11-2004 he came to know about the execution application

EXFA 26/06
-: 4 :-

No.440/2004 in E.P.No.58/2003 in O.S. 20/98 when Ist

respondent filed application for delivery of the petition

schedule property. Immediately thereafter, he approached the

court below by filing E.A.606/2004 under Order XXI Rule 101

read with section 151 of CPC with a prayer to allow the claim

petition contending that he is in absolute ownership and

possession over the petition schedule property for the reasons

stated in the affidavit accompanied thereto. He placed reliance

on the sale certificate as per the order in E.P.55/2002 in

O.S.134/2001 with respect to the whole property including

House No. 11/855 A and the aforesaid land property situated

in Survey No.1077/01 of Puthuvypu village.

4. The Ist respondent filed a detailed counter statement

controverting the claim and averments put forwarded by the

appellant in his claim statement. According to the Ist

respondent, the 2nd respondent is the brother of the

appellant/applicant and the decree in O.S.134/2001 was

obtained in collusion and fraud. It is stated that the brother

of the appellant namely, 2nd respondent was ex parte in

EXFA 26/06
-: 5 :-

O.S.134/2001. It is also stated that O.S. 134/2001 was filed

long after the decree in O.S.20/98. It is also averred that the

appellant/applicant who was the plaintiff in O.S.134/2001 which

was filed after filing E.P.58/2003 in O.S.20/98. It is further

stated that the Ist respondent bid the petition schedule

property in court auction on 7-10-2003 in E.P.58/2003. He

had categorically stated that the 2nd respondent did not

mention anything about O.S.134/2001 in the proceedings in

E.P. 58/2003 in O.S.20/98. Ist respondent has also stated

that he had deposited 25% of the auction price in

E.P.58/2003 and paid a sum of Rs.1,50,000/- towards the

balance amount on 20-10-2003. Accordingly, the said sale in

E.P.58/03 was confirmed on 16-12-2003. Thus he filed

E.A.406/2004 for delivery of the property.

5. A separate counter statement was filed by the 2nd

respondent wherein he had admitted that the

appellant/applicant is his brother. He had also admitted the

agreement dated 9-12-97. It is also stated that the

appellant/applicant has filed O.S.134/2001 against him. He

EXFA 26/06
-: 6 :-

had denied the allegation of collusion or fraud between

himself and the appellant. It is categorically stated that the

sale agreement was prior to the transaction between the 2nd

respondent and 3rd respondent. It is also stated that 2nd

respondent has filed I.P. 2/2001 and 3rd respondent was

aware of it. According to 2nd respondent, the 3rd respondent

filed execution petition suppressing all those facts.

6. The 3rd respondent has also filed a counter

statement. In the said statement, he had stated that the

appellant/applicant and 2nd respondent are brothers. He had

denied the sale agreement alleged to have entered into

between the appellant/applicant and the 2nd respondent. It is

also stated that the appellant was not having financial

capacity to pay the alleged sale price. It is claimed that 2nd

respondent has borrowed money from several persons

including himself. It is the specific case of the 3rd respondent

that he had filed O.S.28/98 and obtained an order of

attachment of property as per I.A.162/98 in O.S.20/98 which

was ultimately decreed against the 2nd respondent and he had

EXFA 26/06
-: 7 :-

filed E.P.58/03 for realisation of the decree amount by sale of

property of the 2nd respondent. It is also stated that in the

execution petition 2nd respondent entered appearance and

deposited a sum of Rs.20,000/- and also filed objection to

Rule 66 notice. It is the specific case that 2nd respondent in

his objection to Rule 66 notice or in the indigent petition did

not mention about the sale agreement. According to the 3rd

respondent, the property was sold in court auction on 7-10-

2003 after complying all the formalities required by law. Ist

respondent bid the property in court auction on 2-1-2003 and

thereafter 2nd respondent filed E.A. 373/2003 to set aside the

sale and that petition was dismissed and sale was confirmed.

It is also stated that 3rd respondent had filed C.A.111/2004 on

3-1-2004 for the issuance of cheque for return of the deposit

amount. The notice to the 2nd respondent in the above

cheque application was issued in the address of the petition

schedule property and the same was refused by the 2nd

respondent and returned. Thus according to the 3rd

respondent, even the very filing of O.S.134/2001 and the

EXFA 26/06
-: 8 :-

execution petition thereon and the delivery etc. are made

fraudulently and in collusion and the sole intention behind it

was to defeat the decree in O.S. 20/98. It is specifically

averred that the appellant/applicant was fully aware of the

entire proceedings in O.S.20/98 and he colluded

with 2nd respondent who is none other than his

brother and the sale in E.P.58/2003 was

conducted by complying all the statutory formalities and

therefore the appellant/applicant has no right or possession

over the petition schedule property.

7. During the course of enquiry and evidence, on the side

of the appellant/applicant, Exts.A1 to A4 were marked as

documentary evidence and examined the appellant himself as

PW-1. On the side of the respondents, RWs-1 and 2 were

examined and documentary evidence were marked as Exts.

B1 to B8.

8. The court below has formulated 6 points for its

consideration. In answer to points Nos.1 to 3, the court has

held that the present application ought to have been filed

EXFA 26/06
-: 9 :-

under Order XXI Rule 99 of C.P.C. instead of invoking the

provisions under Order XXI Rule 101 read with Section 151

CPC and the Court has the power to decide all questions

relating to title and interest of the parties over the property

in applications filed under Order XXI Rule 97 and 99. The court

below has found that sale in E.P.58/2003 in O.S.20/98 took

place after the sale in E.P.55/2002 in O.S.134/2001 and also

found that the disputed property has been attached in O.S.

No.20/98 as per order in I.A.162/98 long prior to the filing of

OS 134/2001. Therefore according to the court below, the sale

in E.P.55/2002 in O.S.134/2001 was conducted at a time

when the order of attachment in O.S. 20/98 was in force. The

court below also came into the conclusion that the decree for

possession contemplated under Order XXI Rule 99 will be

decree for recovery of possession, partition etc., in which it

can be executed by applying for delivery of possession and

therefore according to the court below, Order XXI Rule 99 has

no application and the proper provision which ought to have

been invoked is Order XXI Rule 58 of CPC. But according to

EXFA 26/06
-: 10 :-

the court below, before filing the present application, the

sale has already been taken place and therefore Order XXI

Rule 58 cannot be invoked by the appellant/applicant. Hence,

according to the court below, the remedy is only to file a

separate suit to establish the title of the appellant/applicant

over the disputed property. Thus the court below has held

that the remedy of the appellant/applicant under Order XXI

Rule 58 is already lost on account of the sale of the property

and he has no right to come under Order XXI Rule 99 since

the decree was not for possession. Thus, according to the

court below, the application filed by the appellant/applicant is

not maintainable.

9. After having considered certain circumstances

discussed in the order, the court below found that there is

some force in the arguments advanced on behalf of the

contesting respondents regarding the genuineness of the

agreement for sale set up by PW-1 and 2nd respondent.

According to the court below, the appellant being the plaintiff

in O.S.134/2001 is expected to seek for a decree for specific

EXFA 26/06
-: 11 :-

performance of the contract as his case is that he had paid the

entire consideration, but according to him, he is satisfied with

the decree for recovery of money only and the said stand of

the appellant seriously doubted by the court below especially

in the absence of any explanation as to why he did not

challenge the decree as per which the relief of specific

performance is denied. Therefore, the above conduct of the

appellant/applicant was suspicious and it is held that

O.S.134/2001 is not a genuine suit. It is also held that PW.1-

appellant/applicant and 2nd respondent being direct brothers

and in the absence of anything to show that they were on

inimical terms, the suit was filed in collusion and on the basis

of such inference, the court has further gone to say that there

will not be any difficulty for manipulating an agreement for sale

as Ext.B3 and to mention the previous agreement and

managed to get a decree in O.S.134/2001. Thus the court

below came into the conclusion that O.S.134/2001 is a suit

collusively filed by PW-1 and his brother, the 2nd respondent to

defeat the decree holder in O.S.20/98 and held that the

EXFA 26/06
-: 12 :-

petitioner/appellant has no title or interest over the petition

schedule property under the sale conducted in E.P.55/2002 in

O.S.134/2001 and thus the application/petition filed by the

appellant was dismissed. It is the above finding and the order

which is impugned in this appeal.

10. We have heard elaborately the counsel appearing

for the parties in this appeal. The learned counsel appearing

for the appellant has strenuously argued that the appellant is

in absolute ownership and possession of the petition schedule

property through the sale conducted by the court. According

to him, 3rd respondent as well as Ist respondent had

suppressed the fact of earlier sale and delivery of the property

in favour of the appellant. According to the counsel, the

factum of existence of O.S.134/2001 and the charge decree

based on which the subsequent sale and delivery of the

property to the appellant are not at all in dispute. According to

the counsel, the only case of respondents 1 and 3 in

O.S.134/2001 is that the decree thereon was obtained

fraudulently and collusively and therefore the same is not

EXFA 26/06
-: 13 :-

binding on them. According to the counsel, the finding of the

court below that the decree in O.S.134/2001 was obtained by

fraud and collusion are based upon conjectures and surmises.

He has also argued that the finding of the court below that the

appellant should have filed a claim under Order XXI Rule 58 of

C.P.C. is incorrect and further argued that the court below is

bound to entertain the application under Order XXI Rule 99 and

also further assailed the finding of the court below that the

only remedy open to the appellant is to file a separate suit.

The counsel appearing for the respondents vehemently

opposed the appeal and argued that the appellant/applicant

got the decree collusively and fraudulently and therefore

whatever objection raised by him against the execution of the

decree in O.S.20/98 are not sustainable and thus supported

the impugned order of the court below.

11. The appellant/applicant when approached the court

below, though he filed E.A.606/2004 in E.A.440/2004 under

Order XXI Rule 101 read with section 151 C.P.C, the prayer was

to allow his claim after having found that he is having

EXFA 26/06
-: 14 :-

absolute ownership and possession over the petition schedule

property, namely, the house bearing No.11/855 A and 4 cents

of property situating in Sy.No.1077/1 of Puthuvypu village as

he has got sale certificate as per the auction sale in E.P.

55/2002 in O.S.134/2001. If a person approached the court

below with such prayer, what is the duty and jurisdiction of

the court, is the question to be answered in this appeal.

Though it is disputed, the claim as on the date of the

impugned order is that the appellant/applicant has got

absolute ownership and possession over the petition schedule

property as per the sale conducted at the instance of the

execution court on 25-2-2003 and that the said sale was

confirmed on 26-6-2003 and the sale certificate was issued

on 29-10-2003. It is the further case of the

appellant/applicant that he had filed E.A.3/2004 for delivery

and thus he was in absolute possession and ownership over

the property in question and he had paid building tax,

electricity charges and even he has got telephone connection

to the said house. Of course, there is dispute regarding the

EXFA 26/06
-: 15 :-

mode of obtaining the decree and the suit and also regarding

the agreement which is the subject matter in O.S.134/2001.

But the subsequent development which discernible from the

earlier mentioned facts would show that his claim is a genuine

one and the same has to be entertained and a just and

proper decision has to be taken on such claim. At this juncture,

it is relevant to note that in view of the mandatory provisions

contained in Section 47 of CPC, the execution court has got a

duty to determine all questions relating to the execution,

discharge or satisfaction of the decree and a separate suit is

specifically barred for deciding the above issues. If that be so,

the appellant/applicant has no other option but to approach

the court below by invoking Order XXI Rule 99 of CPC. But the

court below went wrong in holding that either Rule 58 or

Rule 99 of Order XXI cannot be invoked by the

appellant/applicant since his claim was preferred after the

sale of the property and the decree mentioned in Rule 99 is a

decree for the possession of such property. But in the present

case, the decree is not for possession. The above finding of

EXFA 26/06
-: 16 :-

the court below is absolutely unfounded, illegal and

unsustainable. The court below ought to have construed the

above provisions in the light of the mandatory nature of the

provisions and the specific bar contained in section 47 of

C.P.C. In the decision reported in Brahmdeo Chaudhary v.

Rishikesh Prasad Jaiswal (AIR 1997 S.C 856), the Apex

Court has held:

“In short the aforesaid statutory
provisions of Order XXI lay down a complete code
for resolving all disputes pertaining to execution of
decree for possession obtained by a decree-holder
and whose attempts at executing the said decree
meet with rough whether. Once resistance is
offered by a purported stranger to the decree and
which comes to be noted by the Executing Court
as well as by the decree-holder the remedy
available to the decree holder against such an
obstructionist is only under Order XXI, Rule 97
sub-rule(1) and he cannot by-pass such
obstruction and insist on re-issuance of warrant
for possession under Order XXI, Rule 35 with the
help of police force, as that course would amount
to by-passing and circumventing the procedure
laid down under Order XXI, Rule 97 in connection
with removal of obstruction of purported strangers
to the decree. Once such an obstruction is on the
record of the Executing Court it is difficult to
appreciate how the Executing Court can tell such
obstructionist that he must first lose possession
and then only his remedy is to move an
application under Order XXI, Rule 99 CPC and pray
for restoration of possession. The High Court by

EXFA 26/06
-: 17 :-

the impugned order and judgment has taken the
view that the only remedy available to a stranger
to the decree who claims any independent right,
title or interest in the decretal property is to go by
Order XXI, Rule 99. This view of the High court
on the aforesaid statutory scheme is clearly
unsustainable. It is easy to visualise that a
stranger to the decree who claims an independent
right, title and interest in the decretal property
can offer his resistance before getting actually
dispossessed. He can equally agitate his
grievance and claim for adjudication of his
independent right, title and interest in the decretal
property even after losing possession as per Order
XXI, Rule 99. Order XXI Rule 97 deals with a
stage which is prior to the actual execution of the
decree for possession wherein the grievance of
the obstructionist can be adjudicated upon before
actual delivery of possession to the decree-holder.
While Order XXI, Rule 99 on the other hand deals
with the subsequent stage in the execution
proceedings where a stranger claiming any right,
title and interest in the decretal property might
have got actually dispossessed and claims
restoration of possession on adjudication of his
independent right, title and interest dehors the
interest of the judgment-debtor. Both these types
of enquiries in connection with the right, title and
interest of a stranger to the decree are clearly
contemplated by the aforesaid scheme of Order
XXI and it is not as if that such a stranger to the
decree can come in the picture only at the final
stage after losing the possession and not before it
if he is vigilant enough to raise his objection and
obstruction before the warrant for possession gets
actually executed against him.

               xx           xx            xx        xx
               xx           xx            xx        xx

EXFA 26/06
                                   -: 18 :-


It is further held in the decision:

“On the contrary the statutory scheme envisaged
by Order XXI, Rule 97 CPC as discussed earlier
clearly guards against such a pitfall and provides
a statutory remedy both to the decree-holder as
well as to the obstructionist to have their
respective say in the matter and to get proper
adjudication before the Executing Court and it is
that adjudication which subject to the hierarchy of
appeals would remain binding between the parties
to such proceedings and separate suit would be
barred with a view to seeing that multiplicity of
proceedings and parallel proceedings are avoided
and the gamut laid down by Order XXI, Rules 97
to 103 would remain a complete code and the
sole remedy for the concerned parties to have
their grievances once and for all finally resolved in
execution proceedings themselves”.

12. Thus it can be seen that one of the course open to

the appellant is to invoke Rule 99 of Order XXI of C.P.C. But

the court below took a stand which is diametrically opposed to

the statutory provision. In order to come into a conclusion that

Rule 99 of Order XXI is not applicable in the present case, the

court below very much relied upon the first limb of the Rule

99, namely as quoted by the court below, ” holder of a decree

for the possession of such property”. The remaining portion of

Rule 99 of Order XXI has been neglected by the court which

EXFA 26/06
-: 19 :-

says: “or, where such property has been sold in execution of a

decree by the purchaser thereof, he may make an application to

the Court complaining of such dispossession”. In the light of

the above decision, it can be seen that the aggrieved person

need not wait till he is physically dispossessed from the

property. If that be so, the appellant has rightly approached

the court below against the dispossession and with a prayer

“to allot his claim after having found that he is having absolute

ownership and possession over the petition schedule property,

namely, the house bearing No.11/855 A and 4 cents of

property situating in survey No.1077/1 of Puthuvyppu village

as he has got sale certificate as per the auction sale in

E.P.55/2002 in O.S.134/2001” and certainly, the court below

ought to have consider his claim and to dispose of the same

in accordance with law and on merits. But instead of taking

such a stand, the court below went on a footing that such a

petition is unsustainable. We are unable to endorse the

above approach and the finding of the court below.

13. Without an elaborate analysis upon evidence it is

EXFA 26/06
-: 20 :-

also not correct to say that the appellant cannot invoke Rule 58

of Order XXI of CPC. In E.P.58/2003 in O.S.20/98, the auction

sale was on 7-10-2003, but in O.S.134/2001, auction sale was

on 25-2-2003. The confirmation of sale in OS 134/2001 was on

26-6-2003 whereas in O.S 20/98, the confirmation was on 16-

12-2003. So, as per the above datas, one can come into a

safe conclusion that the sale of the petition schedule property

in favour of the appellant/applicant was taken place much

prior to the date of sale in favour of Ist respondent. According

to the appellant/applicant, the agreement for sale which is

the subject matter of OS 134/2001 was on 10-8-97 and the

period for executing the document was extended to 2

years as per the agreement dated 9-12-97 as evidenced by

Ext.B3. According to respondents 1 and 3 the sale

agreement was entered into with a view to defeat the

outcome in O.S. 20/98. However all these aspects are to be

proved and a finding is yet to be arrived on the basis of

evidence and materials to be adduced. Therefore, the finding

of the court below at this stage that Order XXI Rule 58 is not

EXFA 26/06
-: 21 :-

available to the appellant, is not correct. In paragraph 16 of

the impugned judgment, the court below has held that Order

XXI Rule 58 cannot be invoked since before filing the present

application by the appellant, the sale has already been taken

place and further found that the appellant/applicant cannot

invoke Order XXI Rule 99 of CPC as the same is not

sustainable and the court below has suggested that the

remedy is only to file a suit to establish the appellant’s title

over the property. The above suggestion is opposed to the

statutory bar contained in Section 47 of C.P.C. Therefore,

especially in the light of the judgment of the Apex Court, in

Brahmdeo Chaudhary’s case (AIR 1997 SC 856), we are of

the opinion that the appellant’s remedy is only under Order

XXI Rule 99 C.P.C. and the court is bound to entertain such

petition and to take a decision on merits on the basis of the

evidence and materials adduced by the parties.

14. Without proper evidence and appreciation of the

facts involved in the case, the court below came into the

conclusion that the objection and claim raised by the appellant

EXFA 26/06
-: 22 :-

is devoid of any merit as according to the court below,

O.S.134/2001 is a suit filed collusively by PW-1-the

appellant/applicant against his brother-2nd respondent to

defeat the decree holder in O.S 20/98 and thus found that the

appellant has no title or interest over the petition schedule

property and accordingly, the petition was dismissed. In order

to come into the above conclusion and decision, the court

below very much relied on the following circumstances, viz.,

the appellant/applicant who is PW-1 and the 2nd respondent are

brothers, who are the parties in O.S.134/2001, since full

consideration has already been paid and no other formalities

were yet to be complied, there was no need to extend the

period of agreement, the appellant/applicant and 2nd

respondent miserably failed to challenge the plea; that 2nd

respondent in paragraph 4 of Ext.B8 written statement has

stated that there is no other agreement and therefore

according to the court below, all claims based upon the

agreement which is the subject matter of O.S 134/2001 are

false, based upon Exts.B1 and B2 the court below is of the

EXFA 26/06
-: 23 :-

opinion that the non-production of the agreement therein

shows that the plea behind the agreement etc. are false and it

was a suit filed in collusion, according to the court , Ext.B5 is

a copy, there was nothing mentioned in the agreement which

is the subject matter of OS 134/2001. Thus according to the

court below, the so called agreement dated 19-12-97, i.e.

Ext.B3 is a manipulated document. Further, the court below

doubted the stand of the appellant/claimant in his satisfaction

with the decree for money only and for not asking the

property. According to the court, since the brothers are not in

inimical terms , the suit might have been filed collusively and

fraudulently. If the appellant was put in possession at the

time of the transaction, there was no need for him to apply for

delivery of property and, finally, another circumstance

considered by the court below is that after filing the objection

in E.P.58/2003, nothing was mentioned about the agreement

etc. On the basis of the above mentioned circumstances, the

court below came into the conclusion that OS 134/2001 was

filed fraudulently and collusively with a view to defeat the

EXFA 26/06
-: 24 :-

outcome in OS 20/98.

15. In the decision in State of A.P. v. Suryachandra

Rao reported in {(2005) 6 SCC 149)}, the Apex Court held :

“By “fraud” is meant an intention to

deceive; whether it is from any expectation of

advantage to the party himself or from ill-will

towards the other is immaterial. The expression

“fraud” involves two elements, deceit and injury

to the person deceived. Injury is something

other than economic loss, that is, deprivation of

property, whether movable or immovable, or of

money, and it will include any harm whatever

caused to any person in body, mind, reputation

or such others. In short, it is a non-economic or

non-pecuniary loss. A benefit or advantage to

the deceiver, will almost always cause loss or

detriment to the deceived. Even in those rare

cases where there is a benefit or advantage to

the deceiver, but no corresponding loss to the

deceived, the second condition is satisfied”.

In the very same decision, after having considered the

decision in Chengalvaraya Naidu v. Jagannath {(1994) 1

EXFA 26/06
-: 25 :-

SCC 1)}, the Apex court has held that “fraud” is an act of

deliberate deception with the design of securing something by

taking unfair advantage of another. It is a deception in order

to gain by another’s loss. It is a cheating intended to get an

advantage. In paragraph 10 of the above decision, the Apex

court has further held that “an act of “fraud” on court is

always viewed seriously. A collusion or conspiracy with a view

to deprive the rights of others in relation to a property

would render the transaction void ab initio. Fraud and

deception are synonymous. Although in a given case a

deception may not amount to fraud, fraud is anathema to all

equitable principles and any affair tainted with fraud cannot be

perpetuated or saved by the application of any equitable

doctrine including res judicata”.

16. In this regard, it is relevant to note that according

to the appellant, there was an agreement regarding the sale of

the property even prior to the filing of O.S.20/98. Of course,

the above agreement is in dispute, but the same has not been

properly considered by the court below in resolving the dispute

EXFA 26/06
-: 26 :-

in the present claim. Unless a thorough enquiry is conducted

on all those facts and without evidence and materials, it cannot

be said that whether it was a false claim regarding the

agreement, especially, the agreements dated 10-8-97 and 9-

12-97 in O.S.134/2001. In order to come into a definite

conclusion regarding collusion and fraud with respect to the

filing of O.S.134/2001, clear materials and concrete evidence

are absolutely necessary. It is also important to note that

merely because the appellant and 2nd respondent are

happened to be brothers, no collusion or fraud can be inferred

unless there are positive evidence and materials. Therefore,

the finding of the court below in that respect is also not

correct. Yet another point found by the court below against

the appellant is that he was simply satisfied with a decree for

money in O.S.134/2001, which is a suit for specific

performance, instead of asking for a decree for specific

performance at the instance of the court for obtaining the

property. The plaintiff is the master of the plaint and it is for

him to mould the relief and also to take steps if he is

EXFA 26/06
-: 27 :-

unsatisfied with the decree or relief granted. In the present

case, as revealed by the records, though the suit was for

specific performance, a decree for money with a charge over

the property was granted, which according to that court, was

just and proper in the facts and circumstances of case and the

plaintiff, according to his wisdom, has chosen to accept the

decree. Nobody can find fault with such decision of the

plaintiff/appellant.

17. In the present appeal, one of the grounds taken by

the appellant is that the court below has committed wrong

relying on conjectures and surmises for the conclusion of fraud

and collusion; in obtaining the decree in O.S.134/2001. That

finding is arrived even without calling for the records of the

case file. A court of law cannot act upon a mere and vague

averment regarding “fraud”. Plea of “fraud” must be taken

specifically and the same shall be substantiated with cogent

evidence and materials. It appears that the court below

proceeded on an understanding that the appellant’s/applicant’s

case will not come within the purview of Order XXI Rule 99

EXFA 26/06
-: 28 :-

and hence, by simply relying on the above circumstances, the

court below came into an erroneous conclusion that

O.S.134/2001 was filed with oblique motive and a decree

thereon was obtained on fraud and collusion. We cannot

support the findings. Therefore we are of the opinion that the

court below has to reconsider the entire matter afreshly after

giving opportunities to both the parties to raise their

respective pleadings effectively and to advance evidence to

substantiate such pleas. Appellant seeks for an opportunity to

coproduce certain additional materials in support of their case.

Since we are remitting the matter, an opportunity be given to

the parties to produce additional evidence if they chose to file,

and decide the case afresh considering the materials as well.

18. In the light of the above discussion, we are inclined

to allow the appeal and accordingly, the order of the court

below dated 16-8-2006 in E.A.606/2004 in E.A.440/2004 in

E.P.58/2003 in O.S.20/1998 on the file of the Principal Sub

Court, Kochi is hereby set aside and the matter is remanded

to the court below for fresh consideration after giving

EXFA 26/06
-: 29 :-

opportunities to the parties concerned.

In the result, the appeal is allowed and the parties are

directed to bear their respective costs and they are further

directed to appear before the court below on 3-1-2008.

P.R.RAMAN,JUDGE.

V.K.MOHANAN, JUDGE.

kvm/-

EXFA 26/06
-: 30 :-